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As expressed in previous posts, but good to remember:
other than some serious collectibles, FCars et al, a car is always a depreciating asset and an expensive to own and operate asset at that. The current econ has simply exacerbated the situ. Big Buck cars, (and cars of almost any cost), have quickly evolved into "boat-like" depreciation and running costs, (semi-facetiously said.) It may get "better", it may or may not get back to "normal" any time soon, but it is reality for these expensive methods of getting ourselves around... GL,mD |
Having just had a seriously expensive lesson here I am left wondering why anyone would buy brand new when you can get such ridiculous deals on just slightly used. There was always the initial depreciation hit that new buyers get, but drops like this obligate you to either lease (if leasing is even an option or financially viable), or buy used. Losing 50% of the value in a year on a new car is a fools game. I just can't see how dealerships/manufacturers will stay in business (ignoring bail-outs!) if the situation doesn't change.
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Thanks to the lease I had many options . |
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buying new made some sense for long time holders of that new car, (like me), and leasing made sense for people that could write some of the monthly cost off, or simply choose not tie up dough combined with wanting a new ride every few years. The dep hit has alwasy been around on nearly all brands...it is just more dramatic now and further impacted by a very, very soft and illiquid mkt with little credit available. Used ain't bad, (though I haven't bought used since I was a kid/young man back in the '60s), but good cream puff used cars, esp coming off lease, (if not neglected), are screaming deals for those that need a new ride and have the $20-$50gs for a new to them, car. GL,mD |
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Why aren't the payments lower and why is that the case. I guess the current economy is not affecting high end dealers. :whistle: |
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For example a Caddy generally cost a lot to lease because the residual value is low. 2) I don't think high end foreign car makers and dealers are reducing prices like the us manufactures. The dealer can only go so low and I think they all work together. In the end if my BMW costs $1,000 more or less its not going to stop or make me buy. |
Because the residual values that were set were best guesses for the future market, plus credit was very easy to get. Manufacturers got crushed on returning leases as customers could buy better/newer for alot less than they would have to pay if they decided to keep their vehicles when the lease term ended. Looks like the market is playing catch-up now for it's past sins.
Anyway, I still don't know what I will be doing with mine... I think I'll explore a private sale, or I'll just keep it and buy an extended warranty. either way I guess I have come to grips with the fact that I'll be either be losing or spending some money on it in the near future |
"I don't think high end foreign car makers and dealers are reducing prices like the us manufactures. The dealer can only go so low and I think they all work together. In the end if my BMW costs $1,000 more or less its not going to stop or make me buy."
But that's just it -- If it was $1000 or so I wouldn't be complaining. I bought mine used, and I'm still talking about tens of thousands in dropped value in 15 months of ownership. And that doesn't even factor in the oh-by-the-way expenses and the state sales tax that really should be amortized in. |
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My comments regarding leasing relates to the next new car purchase or lease. Generally if you plan to keep a New BMW for only three years I think you should lease. |
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